Which cryptocurrency should I use for cross-border payments? Coinbase recommends XRP and USDC
In recent days, a page on the Coinbase website has caught the attention of the community, and the company seems to be providing users with "fast and free" payment services.
The two supported cryptocurrencies are listed on this page, namely Ripple Coin (XRP) and USDC, which was launched by Circle subsidiary CENTRE last fall. The USDC is the first stable currency to be launched on Coinbase. XRP was launched on the Coinbase at the end of February.
The website says:
Now you can use XRP or USDC to send money to all users who hold Coinbase accounts around the world. The cryptocurrency is very suitable for cross-border payment. After sending the cryptocurrency, the payee can convert it into local currency, and in the process, the instant payment of funds is realized.
Coinbase emphasizes that it provides “not a remittance; instead, it is a cryptocurrency transaction that is exchanged for local currency upon receipt.”
A Coinbase spokesperson later revealed that the service was launched on February 28 this year after the exchange added XRP.
This is primarily a science activity that gives users an idea of the benefits of cross-border payments in cryptocurrencies.
At the same time, Coinbase also lists bank transfers and comparisons between XRP and USDC transactions.
But the existence of this page did not arouse the community's goodwill. In the FAQ section, Coinbase pointed out that users can select all cryptocurrencies (including bitcoin) supported by the exchange for remittance, but XRP and USDC are more suitable for small cross-border transactions, especially the USDC has the advantage of anchoring the dollar. Not as volatile as other currencies.
Larry Cermak, a cryptocurrency analyst, thinks Coinbase is particularly strange about the XRP and USDC. In his view, speed is not the most important in the process of cross-border transactions. The important thing is the currency exchange channel. In this respect, Bitcoin has great advantages.
Some netizens pointed out that this is not a chain transaction in the strict sense, but a transfer of funds between Coinbase user accounts.
Which cryptocurrency is better for cross-border transactions? What do you think?